Section 231: Power of Tribunal to enforce compromise or arrangement
This section is for the Tribunal to enforce and supervise a compromise or arrangement sanctioned under the previous section.
The section, clause by clause
What the section says
In plain terms
(1)Where the Tribunal makes an order under section 230 sanctioning a compromise or an arrangement in respect of a company, it— (a) shall have power to supervise the implementation of the compromise or arrangement; and (b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper implementation of the compromise or arrangement.
The Tribunal has the power to supervise the implementation of a sanctioned compromise or arrangement and can give directions or make modifications as necessary for proper implementation.
(2)If the Tribunal is satisfied that the compromise or arrangement sanctioned under section 230 cannot be implemented satisfactorily with or without modifications, and the company is unable to pay its debts as per the scheme, it may make an order for winding up the company and such an order shall be deemed to be an order made under section 273.
If the Tribunal thinks a sanctioned compromise or arrangement cannot be implemented and the company cannot pay its debts, it can order the company to be wound up.
(3)The provisions of this section shall, so far as may be, also apply to a company in respect of which an order has been made before the commencement of this Act sanctioning a compromise or an arrangement.
The rules in this section also apply to companies that had a compromise or arrangement sanctioned before this Act started.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.